GEOG 216 Lecture Notes - Exchange Rate, Capital Flight, Nyse Mkt
23 Nov 2012
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Document Summary
Entrepots: port that specialises in trade of goods for re-export. Exchange rate: rate at which central banks will exchange 1 nats currency for another nat. Multiplier effects: extra indus, firms, services, jobs, incomes generated by new econ activity. Perception that international terms of trade favour manufactures. Manufactured goods have become more sophisticated + complex. Gov intervenes to protect + regulate domestic econ. Production technologies improved more rapidly historically for manufacturers. Barriers are erected to certain foreign imports (use tariffs, quotas, restrictions) Tariff: fixed %tax on the value of an imported commodity levied @point of entry into the importing nat. Funds are channelled into public + private enterprise to promote domestic industry + skills. Restrictions are placed on foreign capital + investment. Public investment is made in heavy indus (ex: iron + steel works, transport infrastruc) Process raw materials w/simple techs (ex: consumer goods such as clothing + processed foods) Is" policies protect firms (ex: limit imports of non-durables)
